Securitize is set to leverage its newly acquired $400 million capital to pursue acquisitions that will enhance its tokenization services, rather than looking to acquire competitors, as stated by CEO Carlos Domingo in an interview with CoinDesk.
Post-NYSE Listing Strategy
Following its recent public listing on the NYSE, Domingo indicated that the firm is focused on broadening its institutional tokenization platform. "One of the things we're going to be looking at is acquisitions because we obviously don't need $400 million to run the company," Domingo remarked, emphasizing the strength of their balance sheet.
After merging with Cantor Equity Partners II, Securitize raised over $400 million and retained approximately 70% of the SPAC trust, providing the company with fresh funds for its growth initiatives.
Securitize has positioned itself as a leading player in the tokenization infrastructure sector, assisting asset managers in issuing traditional securities on blockchain technology. Founded in 2017, the firm provides services such as issuance, transfer agency, and fund administration for tokenized assets, with a client roster that includes major firms like BlackRock, Apollo, KKR, Hamilton Lane, and VanEck.
To date, Securitize has facilitated the issuance of around $4.4 billion in tokenized assets, including BlackRock's $2.2 billion tokenized U.S. Treasury money market fund and nearly $300 million in tokenized shares of Securitize itself, making it the largest issuer of tokenized assets, as reported by RWA.xyz.
Domingo clarified that the company is not interested in acquiring rivals, noting, "They’re not going to bring anything to me that I don’t have in terms of tech." Instead, Securitize aims to identify businesses that can complement its existing offerings in institutional tokenization, aspiring to create a more comprehensive service platform for its clients.
Growth Potential in Tokenization
The tokenization market has expanded significantly, with banks, asset managers, and exchanges increasingly adopting blockchain-based financial systems. Data from RWA.xyz indicates that tokenized real-world assets have surpassed $32 billion. Projections from Citi predict that tokenized securities could balloon into a $5.5 trillion market by 2030, while estimates from Boston Consulting Group and Ripple suggest the sector could reach $18.9 trillion by 2033.
Much of this growth is shifting towards public markets, with the NYSE's parent company, Intercontinental Exchange (ICE), collaborating with Securitize to develop infrastructure for tokenized equities. The company has also partnered with transfer agents Computershare and Continental to allow public companies to issue shares directly on blockchain platforms.
Moreover, Nasdaq has been actively exploring tokenization initiatives, and the DTCC, which oversees securities settlements in the U.S. for assets exceeding $114 trillion, has announced plans for a tokenized securities platform expected to launch in October.
Domingo pointed out that publicly traded stocks represent one of the largest untapped opportunities for tokenization. He highlighted tokenized equities as a significant area for growth, asserting that even a small fraction of the $140 trillion global equity market transitioning to blockchain could greatly expand the tokenization sector. "Even 2% moving onchain is already $3 trillion [market size]," he noted.
He further commented that the next phase for the industry will focus less on building new blockchain infrastructure and more on encouraging issuers to place assets on the blockchain from the beginning, rather than relying on third-party solutions or synthetic representations. "The issuer is the one that has the legal authority to create the asset," Domingo concluded. "That's where tokenization should start."